Should I Turn My Home into a Rental Property
These days a lot of people are seeking options to purchase a 2nd property to move into but would prefer not to give up their current property. The Banks are not making this a very easy process for qualifying with their rules for using rental income and rental property expenses. We have multiple lenders who will make easier for clients to purchase a new home with a more common-sense approach.
Below are just a few benefits to turning your home into a rental property.
Purchase a new home with as low as 5% down
Lower mortgage payments on your existing home will produce a profitable rental in which you can make money each month on it
Increased value on 2 properties at the same time
Owning a Rental Property is achievable
For this Illustration, the Bank’s are required to use only half of your rental income, so $1,000 and 100% of the expenses, so adding the mortgage, property taxes along with $100 for heat. Our lenders typically allow for an 80% use of rental income which in this case would produce an increase to your income. As you can see, with the Bank’s calculations qualifying amount would only be $465,000 vs. $580,000 with our more creative lenders.
Subject to lender/insurer approval. Qualifying rates are subject to change.